Brief Exercise 5-14 Sheffield Corp. reported net sales $900,000; cost of goods sold $585,000; operating expenses...

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Brief Exercise 5-14 Sheffield Corp. reported net sales $900,000; cost of goods sold $585,000; operating expenses $236,250; an

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Answer 1

Answer #1

Answer:

Profit margin = 8.5%

Gross profit rate = 35%

Explanation:

Profit margin = (Net income / Net sales )*100

= ($76500 / $900000)*100

= 8.5%

Gross profit rate = (Gross profit / Net sale )*100

Gross profit = Net sale - Cost of goods sold

= $900000 - $585000

= $315000

Gross profit rate = ($315000 / $900000)*100

= 35%

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Answer 2

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Brief Exercise 5-14 Sheffield Corp. reported net sales $900,000; cost of goods sold $585,000; operating expenses...

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